Below is a Chart of Accounts, which is a listing of all of the accounts you have to chose from when recording your journal entries. All necessary accounts for the transactions below are included, but you won't necessarily need to utilize all accounts listed in your journal entries.
	Chart of Accounts
	Cash
	Accounts Receivable
	Allowance for Doubtful Accounts
	Inventory
	Land
	Building
	Accumulated Depreciation - Building
	Vans
	Accumulated Depreciation - Vans
	Accounts Payable
	Notes Payable - Wells Fargo
	Retained Earnings
	Revenue - Solar Panels
	Cost of Goods Sold
	Repairs & Maintenance Expense
	Depreciation Expense
	Bad Debt Expense
	Loss on Disposal
	Gain on Disposal
1)	On 12/1, you obtain a loan from Wells Fargo for $4,000,000 to help finance your business. You utilize $3,500,000 of those loan proceeds to complete the purchase of your headquarters on that same day (you receive the other $500,000 of loan proceeds as Cash). The purchased headquarters consists of Land and a Building. The estimated fair market value of the Land on it's own is $1,250,000. The estimated fair market value of the Building on it's own is $3,750,000. You estimate the useful life of the Building is 39 years.
									Calculation of Alocation Between Land & Building
	Date	Account Description			Debit	Credit
	12/1/16	Land			875,000				1,250,000	25%	875,000
		Building			2,625,000				3,750,000	75%	2,625,000
		Cash			500,000
			Note Payable - Wells Fargo			4,000,000			5,000,000
2)	On 12/1, you contract with a local business to install new energy efficient windows on your building for $250,000, with payment due in 60 days. The new windows will increase the efficiency of your building and is considered a major repair.
	Date	Account Description			Debit	Credit
	12/1/16
3)	On 12/4, you purchase 20 solar panels on account for $100,000. You plan to sell and install the solar panels on your customers roofs.
	Date	Account Description			Debit	Credit
	12/4/16
4)	On 12/15 you purchase 5 vans for $11,000 each that your "Inspectors" will utilize to visit customers sites and for installations. The vans have an estimated useful life of 5 years, and an estimated salvage/residual value of $1,000 each. You paid for the vans in cash.
	Date	Account Description			Debit	Credit
	12/15/17
5)	On 12/18, you returned two of the solar panels you purchased after your internal control procedures noted that the panels weren't operating properly, receiving a cash refund for the return.
	Date	Account Description			Debit	Credit
	12/18/16
6)	On 12/19, you install four solar panels on the roofs of four local homes. You charge $12,000 for each installation. Payment from your customers is due in 45 days.
	Date	Account Description			Debit	Credit
	12/19/16
	12/19/16
7)	On 12/20 you contract with a local maintenance company for them to provide $8,000 of ordinary repairs and maintenance services to your building. You pay for the repairs in cash.
	Date	Account Description			Debit	Credit
	12/20/16
8)	Record your December month end adjusting journal entry for Depreciation Expense. In the space below your journal entry, provide your work for calculating Depreciation Expense. Round to the nearest dollar.
	Date	Account Description			Debit	Credit
	12/31/16
		Depreciation Expense Calculation
9)	Record your month end adjusting journal entry to record Bad Debt Expense for the period. Your business uses the "Percentage of Credit Sales" method to estimate bad debts, and estimate 1.5% of sales on account won't be collected.
	Date	Account Description			Debit	Credit
	12/31/16
10)	On 12/31, you decide that you want vans with higher fuel efficiency to keep in line with your company's overall mission. You sell all five vans for a total of $45,000 which is paid for in cash on 12/31.
	Date	Account Description			Debit	Credit
	12/31/16